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uncertainty—or perhaps they're simply accustomed to
Tariffs, tech and new playbook it—and say they'll spend more than last year, according to
Salsify's 2025 Holiday Pulse Report.
for holiday readiness

For many small businesses, the 2025 holiday season Gen Zers and millennials are most likely to spend more
is less about tradition and more about adaptation. during the 2025 holiday shopping season. A quarter or
Inflation, shifting consumer expectations and more of millennials (25 percent) and Gen Zers (29 percent)
ongoing tariff concerns are forcing merchants to told Salsify researchers they plan to spend more on
rewrite their playbooks in real time. their holiday shopping, underscoring younger shoppers'
continued buying power, and desire. Gen Xers are the
Constant Contact's State of Small Business Marketing in least likely to spend more this year (16 percent), followed
2025 report found that 62 percent of small businesses closely by baby boomers.
have already seen tariffs affect sourcing, and nearly
70 percent expect further disruptions. Yet resilience A significant share of shoppers (37 percent) said they
remains the common thread. Owners are retooling buy more frequently due to recommendations, according
supply chains, communicating transparently with to Salsify's research. "Sending personalized gift guides
customers, and turning to technology to stay lean and compiled with products from past browsing sessions and
connected. related items could be a big help to shoppers this holiday
season," Salsify wrote. "Want to send them a personalized
AI tools are playing an increasingly central role. discount, too? That should be more than enough to seal
Businesses are using them to generate marketing the deal."
copy, analyze customer data and repurpose content— Younger consumers to drive pay-later options
saving time without sacrificing quality. Video, too,
has become an indispensable storytelling medium: While installment programs are commonplace, the
nearly 80 percent of small businesses now use it in website Pymnts.com reported that its research suggests
marketing campaigns. "considerable greenfield potential" with certain consumer
segments, namely younger consumers, when it comes to
Email and SMS messaging are regaining prominence spreading out payments.
as dependable, low-cost tools for maintaining
customer relationships in an algorithm-driven world. PYMNTS Intelligence "Installment Persona" data
"With email, you own the relationship," said Constant comparing April and September 2025 revealed substantial
Contact's Dave Charest. growth in pay-later adoption, climbing from 29.5 percent
in April to 37.8 percent in September.
Even as economic pressures mount, the season's
outlook isn't bleak. Rather, it's evolving. This year's Here's a breakdown of buy now, pay later usage (BNPL),
winners are likely to be the businesses that pair agility specifically, by generation, as reported by Pymnts.com:
with authenticity—those willing to pivot quickly,
experiment with digital tools, and meet consumers • Millennials' use of BNPL options rose from 13.8
where they are: online, on mobile and in motion. percent in April to 14.3 percent in September
• Among consumers in Gen Z, BNPL usage rose from
Charest likened it to what occurred during the COVID 14.1 percent in April to 17.8 percent in September
pandemic. "Businesses understand they have to make
hard decisions to make it"[in this economy," he said. Pymnts.com's analysis suggests that younger consumers
view BNPL as a budgeting and liquidity tool rather than
Salesforce data deep dive a last resort credit product. "Although traditional credit
cards still dominate for rewards and larger transactions,
Meanwhile, according to Salesforce, spending in the BNPL appeals for its immediacy and accessibility,"
2023 holiday season totaled $1.17 trillion, and total global Pymnts.com wrote.
ecommerce spending during Cyber Week reached $298
billion. In 2024, those numbers increased significantly, The website and consultancy suggested that as the 2025
even though 21 percent of shoppers said they planned to holiday season approaches, "BNPL's appeal – rooted in
spend less, according to Salsify's 2024 Holiday Consumer instant approval, perceived affordability, and convenience
Research Report (Salsify, a product experience management – aligns neatly with the surge in seasonal discretionary
platform, has collaborated with Salesforce on several year- spending."
end holiday studies).
Gift cards offer flexibility in a tight economy
This year, just over half of shoppers (53 percent) say they'll
spend about the same as last year. Seventeen percent "When prices rise, shoppers may turn to gift cards,
of U.S. shoppers aren't too bogged down by economic allowing them to navigate rising prices while allowing
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